Vail Resorts says more skiers visit its 5 resorts, spend more too; co. lifts workers’ wages

Vail Resorts says more skiers hitting its slopes

BROOMFIELD, Colo. — Vail Resorts Inc. said Wednesday that more skiers have been hitting its slopes this season, and spending more on ski lessons, rental equipment and apres-ski food and drink.

Businesses dependent on discretionary spending, such as ski resorts and casinos, have struggled amid the economic downturn as consumers tightened their spending. But now that economic conditions appear to be improving, more consumers are loosening their grip on their cash and returning to leisure activities.

Vail said total skier visits at its five resorts through April 18 are up about 2.3 percent year-over-year, with dining revenue rising about 2.5 percent and retail/rental revenue climbing about 8.1 percent.

CEO Rob Katz said destination visits and spending were particularly strong over the spring break and Easter periods.

The company also posted an approximately 8.3 percent jump in ski school revenue for the season to date, and a 4.6 percent rise in total lift ticket revenue — including some season pass sales.

The increases are translating into better wages for Vail Resorts employees. Last year, the company cut pay and its 401(k) match to reduce costs as resort attendence suffered. But Katz said that the improved ski season this year has allowed the company to raise wages for year-round workers by 2 percent and partially reinstate its 401(k) match. Seasonal employees will see the wage hike when returning for the upcoming 2010/2011 ski season.

Katz said further potential benefits restorations will be reviewed again in the upcoming fiscal year.

Vail shares rose 71 cents to $44.35 in morning trading.